How to outsource your life by offshoring

Have you used offshoring in your business? In this article I will discuss the pros and cons of offshore outsourcing as well as provide tips for a good offshoring experience.

Picture this. You tuck into your comfy bed and doze off for a full eight hours sleep. You wake up the following morning, take the dog for a walk and smile knowing that when you get into the office, you’ll receive an email with a list of tasks that were completed in India while you slept.

Your accounts have been processed and prepared for the quarterly BAS; your flights have been booked for an upcoming business road show; your wedding invitation list has been compiled; and all the business cards you collected last week have been entered into your database. If that sounds too much like science fiction, get ready because the future is here.

The offshoring revolution

Offshoring began with mainly large companies moving their accounts departments, call centres and data processing units overseas in search of cheaper labour. Small businesses soon cottoned on, outsourcing tasks such as secretarial work, graphic design and business plans. Now, it’s possible to outsource everything from wedding dress designs to plans for a new kitchen.

My experience with offshoring

Running a small business and being constantly wary of cash flow and expenses, I decided to sample a few offshore services early last year.

I decided to go offshore to get a new website built. Back home, I’d been quoted $5,000 for the job. I was curious to find out if all the hype about outsourcing would leave me feeling full-on or just forlorn and decided this would be a good test.

Logging onto www.templatemonster.com I purchased a webpage template for US$66. I then posted a job notice on www.elance.com for someone to drop my words and pictures into the template. The following morning I had 43 bids from countries including India, Canada, Malaysia, Bangladesh, Lebanon and Ukraine. I chose a bid of US$220 from Hyderabad in India.

The end result may not be the most advanced site in the world, but for US$268 I have a fully functioning website that does everything I need it to. In fact, it does a lot more than the website I had developed for another business three years ago that cost more than $10,000!

Proof in the pudding

In 2007 The Wall Street Journal put the personal outsourcing industry to the test with the following results:

Pros of personal outsourcing:

Replicate support services at a fraction of the price.

Work completed overnight while you sleep.

Allows access to services previously only available to the mega rich or high powered.

Allows busy people to free up valuable time.

Cons of personal outsourcing:

Potential language and cultural differences.

Cheaper is not always better - it could end up costing a lot more if you don’t get what you want in the first place.

Can lead to thinking that outsourcing is the panacea. It won’t work if you’re still fundamentally disorganised.

Project revisions can end up costing a lot more time and money

Tips for a good offshoring experience

Reference checks

Make sure you check the validity of the provider you are engaging with. Many sites now feature previous client comments and ratings.

Clear guidelines

Provide simple explanations and very clear instructions about what needs to be done. The more detail you provide the more accurate the results will be.

Realistic expectations

Understand that quality is generally sacrificed for a reduced price. Knowing this will avoid frustration when the finished item arrives.

Understand technology

Outsourcing requires competent use of technology to exchange information between yourself and the provider. If need be, get an IT expert/coach to help you with the basics.

While some businesses and individuals believe offshore outsourcing helps them reduce the bottom line and boost efficiency, others stick to the belief that it's more trouble in the long term.

I think the best way to make a judgement is to try a few offshoring services for yourself and then make an informed decision.

Do you have any experience of offshore outsourcing? How have you found it?

Main Sources: Your Personal Assistant, half a world away, Chicago Tribune, Feb 5, 2008; Outsourcing Your Life, The Wall Street Journal Online, June 2, 2007.

Andrew May is considered Australia's leading expert on performance and productivity. He is a corporate speaker, business coach and bestselling author of Flip the Switch.

11 comments | Add your own 1 2 | Next» View all»

Good read. I'm a regular follower but this is my first comment. So well done and I look forward to each of your posts.
I'm thinking about offshoring sales in the next few weeks so would be interested to hear anyone who has had similar experience or can recommend anywhere? Stefan Jagger from Bracknell, Berkshire, UK
Hi Andrew,
this is a very interesting topic & we all like the sound of saving time & money.
Can I just add to your comment on preparation of BAS - a BAS preparer needs to be compliant with 251LA of the ITAA 1936. There are more details here
http://www.ato.gov.au/print.asp?doc=/content/40604.htm
Yes there are offshore business who are compliant with this registration, e.g. they are members of Association of Chartered Certified Accountants
Association of Taxation & Management Accountants (ATMA)
CPA Australia
Institute of Chartered Accountants in Australia (ICAA)
National Institute of Accountants (NIA)
Taxation Institute of Australia (TIA)
Chartered Institute of Management Accountants (CIMA),
but you do need to ask the question, are you a legal Australian BAS Service provider??? Heather Smith from SUNNY BRISBANE! | Read my articles
Good article Andrew. We used overseas software developers for the development of our marketing product. The owners of the company however were based in Australia and they were recommended to us. We also referenced checked them and their work with other companies in Australia.
As we did not have any experience in software there were interesting discussions, but in the end the working relationship was good and we were happy with the end product.
I think your tips are very relevant and actually apply to any outsourcing whether here or overseas. It is also interesting that I get at least 2 calls a month from overseas developers enquiring about developing software for us. Susan Oakes from Sydney
I am a big fan of offshoring - having bitten the bullet earlier this year. I now have three offshore teams regularly working for me (2 in India, 1 in Romania) who take care of various 'low level' tasks which takes a lot of stress off me.
As always, clear and concise communication is very important, but I am always surprised by the level of enthusiasm, professionalism and initiative that I see from my offshore partners.
Give it a go! Devan from Darwin NT
I have a client who raves about elance and also livechat and would love to know further comments! Grant Hyman from Sydney | Read my articles
I have a great dilemma about constant outsourcing due to the future effects on our children.
A parable ...
Julie: 'Please get some quotes for websites.'
Tom (after approaching local design group): 'I can't get anything less than $1500.'
Julie: 'I don't want to pay that ... let me try offshore.'
Website duly paid for cheaply complete with spelling errors.
2 years later ... they approach local design studio.
'My child wants work experience/a job in web design. Loves art and is really interested. Can you help?'
Studio: 'Sorry - our overheads and legitimate software costs and upgrades are so high we can no longer offer work experience or jobs without a lot more work coming in ...'
If we offshore too much we will lose the job opportunities for the future for our children and grandchildren.
What goes around, comes around.
We are constantly contacted by offshore companies with very bad spelling and grammar offering to do outsourced work at very low US prices, to which we decline. As solos, or very small businesses, we build our businesses on genuine service and person to person contact. Hence we try to support local or Australian services if possible. (Or, if in UK for example - local or UK services when possible.)
International business is wonderful and I'm certainly for doing business with people overseas - but we must look at what is the best way of conducting our business, both locally and internationally, in order to preserve jobs for the future for our children and grandchildren.
'The worker is worthy of his reward'. Concerned Creative from Australia

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